Community Associations

A number of community associations are governed by Declarations/Master Deeds and By Laws containing a provision that any controversy or claim arising out of, or relating to the Declaration/Master Deed or By Laws, must be submitted to and decided by the American Arbitration Association (AAA) under its Commercial Arbitration Rules. This provision is intended to provide a cost and time efficient alternative to litigation. In theory, the use of the AAA for resolution results in a faster and less costly alternative to litigating such controversies and claims. In fact, depending on the nature and size of the matter, advantages of utilizing the AAA do exist.

Continue Reading AAA Arbitration: The Jury is Out

Governor Murphy has now announced that community association pools may open in New Jersey on June 22. If you didn’t hear that announcement, you probably did hear the collective cheers from Cape May to Mahwah.

But, just because pools and some other amenities may open, you must ask: should you open yours?


Continue Reading Pools (and Some Other Amenities) are Opening in New Jersey! Should You Open Yours?

Effective May 18, 2020, proposed regulations to PREDFDA were adopted and published by the New Jersey Department of Community Affairs, Division of Codes and Standards (DCA).

A Brief History

In July 2017, several amendments to PREDFDA (N.J.S.A.45:22A-43) were signed into law becoming known as the “Radburn Election Law” (P.L.2017, c. 106). These amendments broadly focus on membership voting rights, elections, and by-law amendments. In June 2019, proposed regulations to the Radburn Law were introduced and the public was given a period of time to comment on the proposed regulations. While comments were mixed, there was strong opposition to many of the provisions. The regulations have now been approved and published.

How This Impacts Associations

While the provisions of the Radburn Regulations are substantial, following are the provisions which are most significant and/or most relevant to the majority of community associations:


Continue Reading Radburn Law Regulations

The Legislature passed S2342/A3915, which allows non-profit corporations to hold member meetings remotely during this state of emergency, to the extent that the board adopts guidelines to establish procedures governing member meetings. The bill was just signed into law by Governor Murphy.

Continue Reading Governor Murphy Signs Into Law Title 15 Amendment to Allow for Remote Member Meetings

Although CAI-LAC has received word that both houses of the Legislature have pulled the collection moratorium bill  COVID-19 Financial Security for Consumers Act, from the bills to be heard today, it does not mean that the bill will not advance.

We believe it means the Legislature is aware how devastating the bill would be to community associations. However, it is still so important that you write to your legislators in your district to express your strong opposition to the bill.


Continue Reading Pending Legislation Limiting Collection

On March 30, 2020, the U.S. Court of Appeals Third Circuit issued an important decision in the case of Riccio v. Sentry Credit, Inc., approving oral communication as a method to dispute the validity of a debt. This decision overruled Graziano v. Harrison 950 F.2d 107 (3d Cir. 1991), a long-standing case requiring a writing to dispute a debt and will affect all consumer debt collectors including those collecting debt for community associations.

Continue Reading Validity of Debts May Be Disputed by Oral Communication: Third Circuit Rejects Requirement of a Writing to Dispute Consumer Debt Under the Fair Debt Collections Practices Act

The coronavirus pandemic, with its stay at home mandates and work restrictions, is hitting the economy hard. Community association boards and managers should anticipate adverse impacts in the collection of assessments as early as April and must be prepared to address these delinquencies.

Continue Reading Staying the Course: Assessment Collection During (and After) the Coronavirus Pandemic

If you watch or read the news lately, the coronavirus seems to be everywhere. And that’s the problem, right? With the uncertainty of what might be coming, community association boards and managers may want to take actions to help protect their residents and limit the spread of this virus. Rethinking close quarters gatherings – such as social events and meetings – may be prudent or even mandated to help residents keep the recommended “social distance.” This coronavirus may run its course soon, but another type of crisis could be around the corner. Boards and managers should have contingency plans in place for meetings so that they and the owners can continue to conduct business.

Continue Reading Community Association Meetings During the Coronavirus Pandemic (Or Any Other Time of Crisis)

When community association board members hire a transition attorney for their condominium or homeowners association, they may not know exactly what to look for. They may not know much about transition to begin with, or may not know the right questions to ask in order to find the right transition attorney. If your association is looking for a transition attorney, or you are reconsidering the one you have, the following may help you to identify the right transition attorney.

Continue Reading How to Know You Have the Right Transition Attorney for Your Community Association

Acting Governor Sheila Oliver has signed into law S1150, creating a flexible inspection schedule under the Department of Community Affairs (DCA) for multiple dwelling inspections under Title 40.

Historically, the DCA has required inspections at a minimum of once every five years. The length of time between inspections raised concerns over what additional violations could take place over the period before the next inspection, as well as the potential lack of action to address noted issues. To provide a solution, S1150 was introduced by sponsors Sen. M. Teresa Ruiz and Sen. Brian Stack.


Continue Reading New Tiered, Flexible Multiple Dwelling Inspection Schedules in New Jersey